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Sunday, November 6, 2016

Mostar anticipates LCC arrival in 2017

Mostar Airport expects to secure the arrival of a low cost carrier next year following talks with local authorities who are prepared to grant 255.600 euros in subsidies in order for the airline to launch scheduled flights to the city. Both Wizz Air and Ryanair have previously expressed interest in serving Mostar. "Next year we anticipate on receiving 255.600 euros in subsidies because that is the amount needed to bring one of the low cost carriers, which would launch several flights, particularly to Germany and Scandinavia", Marko Djuzel, the head of Traffic and Security at Mostar Airport, said. He added, "We don't need the same amount granted to Tuzla Airport because all of our studies show that the sum requested will cover the costs generated from cooperating with a no frills airline".

In 2013, the Federal government of Bosnia and Herzegovina designated both Mostar and Tuzla airports as the country’s low cost hubs. Since then, Wizz Air has opened a base in Tuzla. Mostar Airport attempted to attract low cost carriers on several occasions but has had little success. Back in 2012 it held talks with Wizz Air over potential flights from Dortmund and Malmo, but the airline opted for Tuzla instead. However, Wizz Air's Head of Airport Development, Jozsef Ujhely, recently said the carrier was looking to further strengthen its presence in Bosnia and Herzegovina, which could result in potential flights to Mostar as well. On the other hand, in October 2014, Ryanair confirmed it had entered negotiations with Mostar Airport concerning the possible launch of services from Germany and Scandinavia. In the end, these flights did not materialise either.

Mostar has struggled to attract scheduled flights but sees a significant number of charter traffic throughout the year, carrying religious pilgrims visiting the nearby Medjugorje sight. Mostar Airport handled 47.9106 passengers during the first three quarters of 2016, down 27.6% on last year due to fewer charters, making it Bosnia and Herzegovina’s third busiest airport behind Sarajevo and Tuzla but ahead of Banja Luka. It handled a record 86.000 travellers in a single year prior to the breakup of the former Yugoslavia but has been unable to surpass that figure ever since. Last week, the airport began overhauling its passenger terminal in a bid to add capacity. Work should be completed by the end of next month.

If it will be Ryanair then I expect in the mear future they will open flight from Mostar to Dublin, London Standsted, Barcelona, Manchester, Eindhoven, Oslo, Copenhagen as these cities are major Ryanair bases

I don't understand why OMO doesn't do something similar to what INI did. Offer 3 eur fees per departing pax and a contract for 3-5 years. No subsidies necessary.

Remember when an airline contacted INI and asked for 200.000 to launch flights, but the director told them no? We all know what airline that was even though it wasn't publicly announced. Now INI has both Ryanair and Wizz and will have 300.000 pax next year, and hopefully a third airline.

€3 per departing pax is a subsidie if it costs the airport more than that to service the plane while at the airport. The question then becomes is it worth it for the airport to offer these loss making rates to the airline. Me thinks yes, when looking at the long the long term and big picture.

That would be possible, however I think Rayanair could also open this route from Eindhoven to Mostar, Eindhoven is near Belgium and Germany and is one of the fastest growing airports in Europe, is a Raynair hub and has a good location in the Nederlands

If this really happens, this would result with about 30.000 new passengers annually. However this isn't the first time news as this one has been announced. Anyway, some actual pre-work has been completed by OMO as well, they purchased some equipment but I'm not sure if the the DCS has been acquired already?

It hasn't been mentioned who would finance the subsidies, I assume FBiH...

It doesn't matter who gives the subsidies, this wil be a great game changer in the BiH avation, a good balance in the Low Cost flying and if it will become Raynair then it will be a good concurent to WizzAir and Tuzla

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